2/4 = 1/2 or 1/3 which is the answer
2 answers:
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Answer:
Both the stock have the same expected return.
Step-by-step explanation:
In year 1 the return earned by stocks A and B are:
Stock A = 2% return
Stock B = 9% return
In year 2 the return earned by stocks A and B are:
Stock A = 18% return
Stock B = 11% return
Compute the expected return for stock A as follows:
Compute the expected return for stock B as follows:
Thus, both the stock have the same expected return.
The mean of this test will be 57.
<h3>What is Standard Deviation and Mean?</h3>
A standard deviation (or σ) is a measure of how dispersed the data is in relation to the mean.
The mean can be used to get an overall idea, or picture, of the data set.
Let Mean be 'm'
and standard deviation=
So, m-2=49
and, m + =61
Solving the above two equation we get
Now, m= 61-
= 61-4
= 57
So , the mean of this test will be =57
Learn more about mean and standard deviation here:
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